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Sharing the Wealth: The Politics of Subnational Distribution of Natural Resource Revenues

In: The Politics of Domestic Resource Mobilization for Social Development

Author

Listed:
  • Javier Arellano-Yanguas

    (University of Deusto)

  • Andrés Mejía-Acosta

    (King’s College London)

Abstract

Arellano-Yanguas and Mejía-Acosta review existing criteria for distributing extractive industry (EI) revenues between central and local governments, and the explanations behind the adoption of different revenue sharing formulas. Although some institutional arrangements like federal or unitary structures matter, there is greater institutional variation in the nature and shape of EI revenue distributions. The analysis suggests that the relative strength of subnational governments vis-à-vis the centre, as well as the relative alignment of preferences between local and national governments, helps to explain a broader and fairer distribution of revenues. The authors conclude with policy recommendations and suggest future research to better understand the development impact of revenue sharing formulas in resource-rich countries.

Suggested Citation

  • Javier Arellano-Yanguas & Andrés Mejía-Acosta, 2020. "Sharing the Wealth: The Politics of Subnational Distribution of Natural Resource Revenues," Social Policy in a Development Context, in: Katja Hujo (ed.), The Politics of Domestic Resource Mobilization for Social Development, chapter 8, pages 237-266, Palgrave Macmillan.
    • Handle: RePEc:pal:sopchp:978-3-030-37595-9_8
    DOI: 10.1007/978-3-030-37595-9_8
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